Archive for May 16th, 2009:
Posted by David Beckham, MarketProMBA on May 16, 2009 at 5:48 pm
It has been some time since my last post. I took a little time away to get some fresh thoughts and contemplate the direction that MarketProMBA is going to take for 2009. My article “Marketing in a Tough Economy” has seen a great deal of traffic and I have had many requests for reprint. I am happy to grant those requests as long as you give me credit. It is obvious why this subject is popular with small and medium size businesses right now. We can’t escape what is happening in our U.S. economy. We are facing some of the toughest times since the depression. There are many economists saying that this could be on of the toughest downturns we have faced.
Therefore, with the current state of the economy in mind, the direction I am taking for the most part in 2009 will be to help small and medium size business owners find ways to weather this financial storm so they can come out on top when it is over. I have also asked a few people that I have a great respect for to add some posts this year. These people range from current business owners to directory advertising professionals. This will really add to the diversity of MarketProMBA.
In all, I am expecting this will be a great year for business despite the current economic conditions. The longest lasting recession on record was 16 months long. We are 12 months into this one, so the expectation is we will start to come out of it later in 2009. There won’t be overnight changes, but we can expect to see some recovery. My hope for all business owners is that you remain strong, work smart and keep going forward. You will persevere and come out a stronger business in the end.
Happy Holidays to all best wishes to you for a prosperous New Year!
David Beckham
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Posted by David Beckham, MarketProMBA on May 16, 2009 at 5:38 pm
Uncertain economic times call for creating marketing ideas. When sales slow and businesses start to struggle, it is usually easy to look at your marketing budget as an easy target for cutting. During economic downturns, your target market shrinks which can result in less new customers. If you cut your marketing budget, you take a chance at losing market share, which means fewer customers. When the market rebounds, your share is still smaller and your competitors might have the edge. Look for ways to market smarter during tough economic times and consider trading out services or products for advertising better known as “bartering”.
Bartering is a simple way to maintain your same level of advertising without physically cut your marketing budget. Every business has something to trade out whether it is tangible or intangible. Tangible products are any goods you can touch and feel. Tangible products have associated values with them such as production or purchasing costs. When you trade out tangible items, it is typical to trade them out at retail costs. Intangible products can be your skills, knowledge, or services. An accountant could trade out accounting services in trade for advertising. It is typical to trade out services at the street value or higher of the product or service you are trading.
When you barter goods and services, you don’t use out of pocket operating money. There are associated costs in products or time, but it doesn’t hit your immediate bottom line. The costs can be defrayed over a set period of time and in return, you will get the advertising you need for your business. Therefore, look for barter opportunities when possible. Bartering will help you maintain your current marketing level and provide you with a better solution than cutting your marketing budget and losing potential market share.
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Posted by David Beckham, MarketProMBA on May 16, 2009 at 5:34 pm
Today in church, I heard a message that really struck me. It was the story of Elijah and the widower with her two sons. Most of you are asking why church has anything to do with business and marketing. As I listened to the sermon, I asked myself the same question. I found this story unique because it struck me that this message has a great deal to do with our businesses.
In a nutshell, II Kings 4:1-7 is the story of the widower who was about to loose her two sons to the tax collector to become slaves. She was left with nothing to pay her debts. Elijah asks her “what do you have in your house?” The widower says she has oil. Therefore, the story goes that Elijah asks her to go to all her neighbors and ask for all the jars she could get. The woman did and as she started pouring the oil, it filled all of the jars she had collected until they were all used. Elijah said to her to sell the oil and pay her debts.
The story was about looking inside your house to find what you need in order to get past your problems. It also talks about going to your neighbors and asking for help. So how does this relate to business and marketing? We all have something inside of us and “in our house”. Too often, we overlook some resources because we consider them insignificant. We all have skills and resources that we need to use to our advantage in our personal lives and businesses.
As I was thinking about this story, I asked what was in my house. Right now, the economy is in the toilet, business is slow for most everyone and every dollar a company has needs to be spent with the highest efficiency. In order to survive, we need to either find the opportunities around us to save money or make money. Too often, business owners look to cut marketing and advertising when times are hard. Don’t cut your advertising, it is like committing business harry carry. Look “inside your house” to find other alternatives to cutting your marketing budgets.
Look at your current business, what do you have that is not being utilized which could be used to improve your business situation. Instead of cutting your marketing budget, perhaps you can sell unused equipment. You could also cross train your current employees to do other jobs instead of hiring new or temporary. Look for low cost or no cost ideas to market your business. Are your employees doing all they can to help promote your business? Talk with them and get their buy-in on promoting the company. It keeps them in a job and helps you gain market position.
As the story goes, Elijah tells the widower to ask her neighbors for jars. In the business world, I associate this asking other business owners or acquaintances for help. Perhaps another business owner has a need for your skills and is willing to trade services. This saves budgets and helps your business at the same time. Our “neighbors” are willing to give, as are we when asked. We all have something to give and the hope is we will receive in return. Trading services can be a low cost or no cost way to get your business additional resources.
Our company, The Original Basket Boutique, trades out gift baskets for radio and newspaper advertising. Trading our baskets serves our need for cheap marketing and the advertising medium’s need for customer appreciation gifts. What products or services do you have that can be traded? You can also trade or offer your skills and knowledge to businesses. Maybe finance or marketing is your strength. You can help other business owners some assistance in return for their services or goods.
Business owners across America are looking for ways to survey this economic downturn. Our history has seen this before and in time, our economy will pull out of this and business will be good again for a while. Our economy is cyclical and always has been. In order to keep our businesses afloat during this time, we have to think outside the box and look for opportunities wherever they exist.
You don’t have to be religious to appreciate this story. It is more about helping those around you and finding help when you need it. We all have resources that we have yet to tap. You just need to figure out what those are. Look inside “your house” and you will find opportunities and resources you never knew existed or have overlooked.
David Beckham
B.BA, MBA Marketing
MarketProMBA Consulting
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Posted by David Beckham, MarketProMBA on May 16, 2009 at 5:21 pm
Now that I have placed a few of my older articles on my blog, I thought it was time to start some timely articles. Over the next few weeks, I am going to cover some low or no cost marketing ideas to help you get your small business off the the ground. Most people know these ideas as Guerrilla Marketing. As a small business owner, I have always been a fan of Guerrilla Marketing. Most people just starting out in business have a limited budget to start so they choose to not put money into marketing. This is of course a mistake because marketing doesn’t have to be expensive. Guerrilla Marketing is the art of using marketing ideas that are “out of the box” and low cost. This week, we will cover the first of several Guerrilla ideas.
This month’s section is about an often overlooked low cost marketing idea. One of our most effective marketing tools has been our business cards. It seems so simple, but our cards have helped us land a great deal of business. First, make sure your business card stands out. Color and dimensions can be extremely effective. A unique card will usually spark conversation and give you an opportunity to tell people about your business. Think of your business card as a mini-billboard. What do you want people to know about your business? Portray this with your card.
In order for your business card to work, you need to give a card to everyone you meet. We have given away over 2,500 business cards the past 6 months. Leave your card everywhere you go. For example, you can leave one with your tip when you eat at a restaurant or leave them on public bulletin boards around town. Make it a goal to give out 5-10 business cards to someone each and every day. Even if your card goes to someone who might not need your service now, they might know someone who does. You are also building brand recognition. The more you get your name out there, the better chance you have at being top or mind in the market place. The bottom line is, the more the cards you give out, the chances you have at being seen by someone who is in need of your services. Don’t be afraid to give out your cards and use them up. You might be surprised at the results!
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Posted by David Beckham, MarketProMBA on May 16, 2009 at 5:17 pm
As a marketing and advertising professional, I have asked this very question many times to customers that I consult with. “Are you in business or a business person?” It isn’t meant to be rude or cut a business owner down, but rather to help them think about how they are currently managing their business. Too many people enter the world of small business ownership blindly without really having a good plan and the means to execute that plan.
In order to know if you are a Business Person or just in business, we need to break down some very simple principals that apply to small business ownership so you can decide for yourself.
1. A Business Person has a plan. Someone in business just wings it.
This doesn’t mean you need a long drawn out business and marketing plan. If you are a new business person, you may not even have an idea how to start. Your plan doesn’t need to be elaborate or detailed at first. It should be detailed enough to describe your business and how you are going to run it for the first year.
As you begin your new business venture, take the time to write down some ideas about your business. You can break down your business plan with a SWOT analysis, Strengths, Weaknesses, Opportunities, and Threats. Your strengths are typically internal attributes. A weakness is any type of shortcomings your business might have. It is also considered an internal attribute. Opportunities are external forces that can affect the success of your business. Threats are external forces such as competitors or anomalies in the marketplace that could have an adverse affect on your business.
A simple business plan gives you some direction and guidance in starting your business. A business plan is a path that you can use to get off to a strong start and help you on your way to being a successful small business owner.
2. A Business Person has a plan to market their business; a person in business tries some ideas and hopes the customers will show.
Every business has to market itself in one way or another. Customers are an essential component of your businesses success. (Thanks Captain Obvious, right?) How do you get the customers to come to you? You have to market your business. There are a number of ways to market your business. So many in fact that the average small business owner doesn’t always know where to start. If marketing isn’t your specialty and your business requires a unique clientele it is always my recommendation to hire a professional to help market your business. A marketing professional can help you design a plan that will get your business off to a strong start and bring the customers to you.
If your business plan doesn’t include the initial funds to hire a marketing professional then at least have a plan. Look around, what are your competitors doing? Are they using yellow pages, billboards, TV, radio, personal sales or other out of the box marketing ideas. It is not always a given that your competitors are doing the right kind of marketing to attract customers. It could be they are lost in marketing as well.
Have a simple plan to market your business. Don’t overlook anything. Write down your ideas, analyze your competitors, and act on your plan. You will learn as you go what works and what doesn’t. Act on the ideas that work, refine and tweak them, then put them out there again. A simple marketing plan truly makes you a Business Person.
3. A Business Person works smarter, not harder. A person in business works hard, but doesn’t always succeed.
I know many small business owners. Some of them are incredible hard workers who don’t seem to have any time other than to work on their business. I admire their dedication, but I am sorry they don’t have more time to enjoy the fruits of their labor. Working smarter is as simple as analyzing what works well in your business and doing more of that. Outsource when you can’t do it all your self. Perhaps having a commissioned sales person could bring your more business without really hurting your profit? It could free you up to spend more time in other areas of your business or just give you some time off.
Working smarter could be as simple as analyzing the most tedious parts of your business to find a better way to complete them or outsource them to save you time. If you are drowning in paperwork, hire a part time bookkeeper. If you don’t have time to answer every call, hire an answering service. There are probably countless ways to work smarter and not harder in your industry. You need should carefully analyze your business
to find those activities to tighten up and make your business run smoother.
If we sum up the few principals that we just learned, we can state that Business People operate businesses with a plan of action. A Business Person looks beyond today and sees their business for what it could be. A Business Person analyzes their competitors and business environment continually to capitalize on opportunities and avoid pitfalls.
This blog article was not intended to upset anyone, but to make you think. Are you a Business Person, or just a person in business? We will explore more of this subject down the road. In the mean time, I would like to hear your ideas on this subject. I wish everyone continued success and prosperity in your business.
David Beckham, B.BA, MBA Marketing
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Posted by David Beckham, MarketProMBA on May 16, 2009 at 5:14 pm
You have paid your licenses, set up your company, bought your equipment and now you’re a small business owner. So, what’s next? In the movie, “Field of Dreams”, the catch phrase was, “If you build it they will come”. In the business world, it doesn’t work that easy. In order to get customers to your door, you have to market your business.
To many small business owners, marketing and advertising can be a mystery. In order to be successful, you need a plan. A marketing plan can be very simple to very complex. My recommendation is to start with a simple plan, then build on it.
Here is an outline for a simple marketing plan:
Section 1
Business Overview
This is your chance to discuss your business. Look at your company objectively. Where did you start? What are some of the major events in starting your business? Does your business have any special traits or qualities that make it unique? This is your chance to analyze your business and your mission. This section will explain to someone on the outside your beginnings and where you are going.
Section 2
Revenue History and Forecast
You should chart your revenue projections for the next 2 to 5 years. If it is possible, break your sales down by segments or niches to gain a better understanding of where you expect revenues. This section will give you a good understanding of your potential marketing investments because you will be able to determine your budget based on expected sales. You should be as detailed as possible in order to draw a clear picture of where your marketing budget should be spent, which products are going to give you the highest profits.
Section 3
The Current Business Environment
In order to be successful, it is important that you know your industry and the internal and external factors that can affect your business. This is your opportunity to study your industry to analyze the trends and major changes that can affect demand of your product and help determine pricing.
Section 4
The Competition
Now is your chance to see how you rate against your competitors. In this section, you will analyze your competition’s strengths and weaknesses. It is best to research and review 3 to 5 of your top competitors to assess how there business is performing and the amount of market share they currently hold. This is your chance to estimate or determine the market share you currently hold and anticipate gaining.
Section 6
Positioning Statement
From the information above, you will need to describe your company’s position for the upcoming year. The positioning statement should be about one sentence long and can be used as a tag line in your promotions and advertising plan. The positioning statement doesn’t have to be clever or witty. As long as it is clear, concise and is geared to your target audience, it will work. Here is an example for a home architect, “Elegant home designs at affordable prices.” Simple and to the point usually works the best.
Section 7
Marketing Objectives
In this section, you will need to come up with 3 – 4 measurable marketing objectives. These objectives are important because they are key objectives for your business. This is why they should be measurable on a monthly basis and have specific definable reports that track them. An example would be: Increase revenues by 10% each month, or gain six new customers per week.
Section 8
Marketing Strategies
First, you need to know the difference between an objective and a strategy. Objectives state what you are going to do and a strategies tell how you will accomplish it. Looking at your marketing objectives, what strategies could you implement to achieve growing revenues by 10% or gaining 6 new customers per month? In order to achieve these objectives your strategy could be to raise prices on your products, increase your average sale per customer, or enter new markets. Your job is to pick the strategies that work best with your company.
Section 9
Marketing Budget
If you have a new business, you will need to make some estimates for your budget over the next year. In this section, you will break down your marketing budget through specific expenditures or channels such as advertising, yellow pages, direct mail, new sales reps, marketing materials, your website, etc. Always be sure to analyze your return on investment to ensure you are getting the most for your money.
Section 10
Marketing Channels
In the previous section, you determined in which channels you were spending your marketing budget. In this section, you need to set the objectives and strategies for each of the channels you selected. Be specific how your budget will be spent in each channel and the objectives you want to achieve.
Section 11
Tracking
In this section, you can create a calendar to chart every activity and expense you have for the entire year. This will help you keep your marketing plan on track and on budget.
Conclusion
Creating a well-written marketing plan is just one of the first steps in getting your business off to a good start. Once you have completed your plan, share it with everyone in your company. It is important that the entire company understands your marketing plan so they can help in the execution and measurement of the plan.
A yearly marketing plan is an important tool for your business. Your plan will help to improve your marketing and advertising each year. As your year progresses, you will determine what is working best in your marketing plan so you can do more of the same and drop what doesn’t work. A marketing plan will give you benchmarks to measure your success and failures.
If you are just starting your business, a marketing plan might seem like an overwhelming task. Don’t worry about having the perfect plan. A so-so plan is better than not doing one at all. Having a plan will give your business direction, guidance and start you on your way to being a successful small business owner.
David Beckham, B.BA, MBA
MarketProMBA
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Posted by David Beckham, MarketProMBA on May 16, 2009 at 5:11 pm
You can’t escape the news. These are tough times for businesses and consumers. Inflated fuel costs, slow housing sales, and inflation are making business a challenge for all companies, small to large. The simple fact is our economy is at a low point. The good news is the U.S. economy has always been cyclical. We ride high in the strong years and we learn to ride out the wave during the down times.
Still, it is not all “doom and gloom”. Marketing in a tough economy can be extremely effective and many businesses will actually thrive during economic downswings. You are probably asking yourself, “How is this possible?” It is very simple; businesses that succeed in tough times know the secret is smarter marketing.
Tough economies and slow sales cause businesses to reevaluate their current budgets and spending. The easiest place to cut your budget is usually in marketing. Your advertising and promotions budget can be an easy target because most businesses think they can reduce their marketing this year and make up for it when the economy improves. During tough economies, cutting back your marketing can cripple your business. In order to survive this economic downturn, should increase your marketing without increasing the money you are spending.
The economy affects businesses and consumers. This means that your target market actually shrinks. Since y our pool of potential clients will be reduced, you have to maintain or increase your marketing in order to keep your competitors from moving in and taking customers. A strong competitor will view tough times as an opportunity to grab new market share and increase sales. Don’t give them the opportunity.
How do you get more bang for your marketing dollars without spending more? You need to use some very simple, but proven marketing methods to yield more results. Here is a list of six basic marketing principals for tough economic times.
- Focus your marketing. This means you use directed marketing methods when possible. Direct marketing media can typically be tracked and monitored. Tracking will ensure you are getting the most value from your advertising. Be sure your advertising uses a call to action to get customers to contact you. Offer prospective clients free samples or a gift for appointments to pitch them on your product or service. Then be sure to follow up with each potential customer. Remember, you have to work a little harder to win a customer in tough times.
- Stay in contact with your current customers. Marketing professionals have proven it costs more to get a new customer than to keep an existing one. In tough times, go to your existing customers. Reward them with incentives; let them know they are important. You will most likely make up some of your slow sales by increasing sales to existing clients. Keep the lines of communications open and build the strength of that relationship. Bring back old customers with a welcome back offering or gift. Build the relationship so they will do business with you again.
- Let your current customers help you. Word-of-mouth and referral sales can be extremely effective and cost efficient. Offer your current clients a gift or reward for sending business your way. Customer testimonials are extremely effective in gaining new business. Obviously, a satisfied customer is much more likely to talk about your business than a less than happy customer.
- Look for free or inexpensive advertising and promotions. Consider using barters or trade-out for services with companies that can help promote your business. Be creative and think outside of the box! Tough times call for creative thinking. Use press releases when ever possible. Offering a new product line or making business changes can always be considered newsworthy.
- Keep your employees happy. While this isn’t exactly marketing, it does work hand-in-hand with it. Your employees are your most important assets. Tough times affect them as well which in turn affects your business. Recognize their efforts. Reward them for going above and beyond their duties. Help them understand their importance in the company and let them sing your praises to potential clients. Your employees can be extremely effective marketers when they are happy.
- Use the Internet. Finally, one area that businesses are realizing untapped potential is in Internet marketing. Use your website to your fullest potential. Advertise it on your company vehicles, business cards, flyers, billboards or anywhere you promote your company. Over 60% of Americans now use the Internet. If your business does not use the Internet, then you might want to rethink your strategy. The Internet is here to stay and it will continue to grow exponentially in the coming years.
These six marketing methods are just some of the ways to survive this current economy. Using these methods will improve your chances of success and help your business come out on top when the economy begins to improve. Good luck and hang tough. Things will get better.
David Beckham, B.BA, MBA Marketing
AT&T Advertising & Publishing, Sales Support Manager
THE original basket boutique, Director of Operations
David Beckham has been a Manager with AT&T Advertising & Publishing for the past 11 years. His background is in marketing, sales and operations. He has a Bachelors of Business Administration and MBA in Marketing. David and his wife Sheri are the owners of THE original basket boutique in Gulf Breeze, FL.
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Posted by David Beckham, MarketProMBA on May 16, 2009 at 5:08 pm
My name is David Beckham, not to be confused with the soccer player. I am the original!
I currently work for AT&T Advertising & Publishing, The Real Yellow Pages as the Sales Support Manager for the Florida Panhandle. As the Sales Support Manager, I have the responsibility of the processes and procedures for a $30 plus million-dollar district.
A year ago, my wife Sheri and I purchased The Original Basket Boutique franchise for Pensacola, FL. Since that time, I have taken on an additional role with The Original Basket Boutique (OBB) as the Director of Operations. My primary responsibility is the development and sales of new franchises, national marketing, and the development of the corporate web site.
I have a Bachelors of Business Administration in Marketing and a Masters of Business Administration in Marketing. My background includes operational management, marketing, promotions, administration, and business development. I have experience with small business marketing and development as well as a very strong technical background in computers and technology. I have developed web sites and online marketing programs.
Overall, you might call me a jack-of-all-trades. My well-rounded background has given me opportunities and experience that go beyond my formal education.
My goal is to teach and learn from all those who visit my blog. We can all learn so much from each other and I look forward to conversing with everyone.
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